Tens of millions of Americans may be eligible for a COVID tax refund, but time is running out to file a claim. The deadline to file for potential tax refunds that stem from IRS penalties and interest is July 10. A federal court ruled that taxpayers were not required to file their taxes on time during the COVID-19 pandemic, and the IRS owes penalty payments to taxpayers.
Who is Eligible?
The following taxpayers should review their records and potentially apply for a refund: those who filed a return during the COVID-19 disaster relief period and were assessed penalties or interest; those who paid or still owe penalties or interest for filing or paying late; those who filed late international information returns; or those who believe they may have missed a refund or other tax benefit.
Many taxpayers affected by this issue have low and moderate incomes and may not have professional representation, making it harder for them to learn about complex legal developments like this one.
How to Apply
To claim a potential refund, people will need to fill out a Form 843, which can be found on the IRS website. The form can be filed electronically for claims related to the COVID refund. Taxpayers should focus on whether their transcript shows penalties, interest, payments, refund activity, or other account activity from January 20, 2020, through July 10, 2023.
Original reporting: 40/29 / KHBS (NW Arkansas) — read the source article.
